STOCKTON - A controversial finalist in line to become Stockton's next city manager abruptly dropped out of the running amid contract negotiations, Mayor Anthony Silva said Wednesday.

David Garcia, currently the city manager of Coachella in Southern California, was identified Tuesday amid confidential talks with Stockton about the terms of his compensation package.

"Stockton lost out on a great city manager and someone who was really going to heal this community," Silva said.

Silva had nominated Garcia as his pick to replace Bob Deis, who retired Oct. 31. The City Council will regroup Tuesday behind closed doors.

By then Silva said he will have decided if he wishes to nominate another choice from the pool of six finalists whom the council has interviewed, or whether a new national search will begin.

Negotiations between Stockton and Garcia were nearly complete Tuesday, but Silva said the deal fell through at the last minute. Silva declined to give details.

"Sometimes in negotiations there's give and take on both sides," he said.

Garcia did not respond to The Record seeking comment Wednesday, but The Desert Sun quoted Coachella Councilman Steve Hernandez, who said Silva bungled Garcia's deal in Stockton.

"I think the mayor of Stockton was premature," Hernandez said of Silva's releasing Garcia's name as the pick before an agreement had been reached.

The newspaper also quoted an email from Garcia, blaming the spoiled deal on Stockton offering him less money than what he receives in Coachella and less than Deis, who earned $240,000 a year in base pay.

"I understand the financial challenges facing Stockton," Garcia wrote in the email. "However, I owe it to my family to make good financial decisions."

Garcia's a résumé includes serving in Iraq for the State Department as the team leader of a provincial reconstruction team. He had also twice ended stints as city manager under controversy.

He left Chula Vista in 2008 after one year under accusations he looked at inappropriate pictures on his work computer, including images of Pamela Anderson and other scantily clad women. Garcia has denied the charges.

Garcia had been asked to resign from his city manager post in Corpus Christi, Texas, in part because of allegations he had been involved in a relationship with a subordinate.

Stockton's next city manager will be responsible for making sure millions of dollars generated from a 3/4-cent sales tax increase voters approved on Tuesday will be spent appropriately.

Until Deis' replacement is hired, Silva said he is confident with interim City Manager Kurt Wilson and the department heads already in place. Still, Silva said he looks forward to having a full-time city manager picked.

"Although the department heads and the interim city manager are competent," Silva said, "Stockton residents deserve to have a city manager who's a fresh face and a proven leader and someone they can trust to spend this new money."